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Tuesday, 7 November 2017

Tata Chemicals shares gain 2% on board nod to sell Haldia fertiliser unit

Tata Chemicals said that the divestment by the company is in line with its strategic direction to focus on speciality chemical and food businesses while maintaining leadership in inorganic chemicals and exiting the fertiliser business.

stock market news Tata Chemicals share price gained as much as 2 percent in morning Tuesday after getting board approval for selling Haldia fertiliser unit to Netherlands-based Indorama Holdings BV for Rs 375 crore.

"The board of directors on Monday has approved the sale of phosphatic fertilisers business by way of a slump sale on a going concern basis to IRC Agrochemicals Private Limited (IRC), a wholly owned subsidiary of Indorama Holdings BV," the company said in its filing.

The transaction would involve transfer of Haldia plant, trading business of bulk and non-bulk fertilisers along with immovable, movable properties, working capital and product brands but excluding outstanding subsidy amounts, it added. STOCK MARKET TIPS

The board also approved the execution of definitive agreements between parties in this regard, subject to regulatory approvals.

Commenting on the development, Tata Chemicals Managing Director R Mukundan said, "The company continues to move forward on its strategy to focus on speciality chemicals and consumer food business while maintaining leadership in inorganic chemicals business."

Tata Chemicals said that the divestment by the company is in line with its strategic direction to focus on speciality chemical and food businesses while maintaining leadership in inorganic chemicals and exiting the fertiliser business.

Its speciality chemical portfolio includes sodium bicarbonate business, agrochemicals through its subsidiary, Rallis India in addition to the planned investments in the greenfield sites in Nellore for nutraceuticals and in Dahej for the HD Silica business.

Food business includes pulses, spices under Tata Sampann brand in addition to edible salt brand Tata Salt.

Tata Chemicals is amongst leading soda ash manufacturers in the world, with operations in India, Kenya, South Africa, the UK and the US.

At 09:32 hours IST, the stock price was quoting at Rs 741.60, up Rs 5.80, or 0.79 percent on the BSE.
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